Continued revenue growth within the home furnishings division at Dorel Industries could not offset sales declines in the company’s juvenile and sports segments during the second quarter.
Total company revenue for the three-month period ended June 30 was $637.3 million, down 4.8% from the second quarter of 2015. Net loss was $38.6 million, compared to net income of $16.2 million the same quarter the prior year.
Total revenue in home furnishings was $161.8 million, up 5.3% from the second quarter of 2015. Operating profit was $13.8 million, up 58.3%. Company officials said the segment’s sales to online retailers in the second quarter and for the first half of the year continue to drive revenue growth, which significantly exceeded reductions in sales through the brick-and-mortar channel. Due to the e-commerce growth, the segment is increasing its warehouse footprint in Savannah, Georgia.
Second quarter revenue in Dorel’s juvenile segment was $238.9 million, down 9.8%. The sports segment had sales of $236.5 million, down 5.8% year-over-year.
“Dorel Home Furnishings continued its consistent strong performance, further building shareholder value with sustained, strong online sales growth. Year-to-date the segment has grown revenues by 7%, with operating profit increasing 66%,” said Martin Schwartz, Dorel president and CEO.
